Strong Asia performance continues as Indonesia Telkom and KT report double-digit growth

Indonesia Telkom and KT have continued positive performances for operators in the Asia markets, both reporting healthy growth.

KT has continued to diversify its business, reducing its reliance on its telephony business, as it posted healthy growth in its media business, wireless and broadband. Total revenues for the quarter were roughly $5.1 billion, an increase of 4.5%, with profits of $220 million. This number was down year-on-year, though this was partly due to the sale of a subsidiary during the same period in 2015.

IPTV for Korea’s second largest telco demonstrated net gains of 140,000 subscribers, with revenues accounting for $361 million, an increase of 15% year-on-year. Total subscribers now stands at 6.8 million, which while exceeds its long-term rivals SK Telecom (3.7 million subscribers), it is growing at a slower rate, as SK added 280,000 net new subscribers over the period.

The team also reported strong growth in the wireless arena with the LTE user base now accounting for roughly 74% of the total 13.6 million subscribers. This is one area where KT has the upper hand on SK Telecom, as its rival only accounts 67% as its LTE user base. The fixed less business was slightly less prominent, as while its GiGA internet subscribers showed healthy growth, now accounting for roughly 20% of all subscribers at 1.7 million, the total business unit declined by 1.1% over the course of the period.

The Indonesia Telkom team reported healthy gains across the first half of 2016, with a 33% boost in profits to $756 million. Mobile revenues increased 2.4% over the course of the period, which seemingly covered up for losses in the foxed line and interconnect business units, down 3.5% and 16% respectively.

The Telkomsel user base now accounts for 157 million customers, up 9% year-on-year, of which 30% are now postpaid.

The last couple of days have proved to be a successful period for operators in the Asia Pacific markets. Alongside KT and Indonesia Telkom, SK Telecom boasted of strong gains in its IPTV unit, as well as outlining its plans for the IoT market, which it believes will be worth in the region of $12.6 billion by 2020.